What will be produced: A pawn shop offers a loan service to local residents (borrowers), who offer their personal goods as collateral (property or other asset that a borrower offers as a way for a lender to secure the loan) for a loan. The pawn broker and the borrower negotiate a contract that specifies a date in which the loan must be repaid. If the borrower fails to repay the loan, he/she forfeits the personal good as collateral. Any goods that are forfeited by the borrower will be offered for resale to the local population.
How will the goods be produced: Any goods that the pawn shop acquires through the pawning process will be offered to local residents.
Who will get the goods: Anyone will be eligible for a loan since the borrower must back the loan with collateral.
The price of goods offered by the pawn shop will depend upon the value of the collateral used to secure loans. With this in mind, the pawn shop will offer a range of products at high and low prices, and consumers of all income levels will find goods that appeal to their needs and wants.
Cafe
What will be produced: A cafe provides an assortment of beverages and pastries, including coffee, cappuccino, frappes, tea, lattes, espresso, scones, muffins, cookies, and pie. Also, cafes provide coffee cups, travel mugs, coffee beans and other items that the consumer can purchase for home use.
How will the goods be produced: The cafe will hire several baristas (a person who prepares and serves the drinks). To make the drinks, baristas will be required to use various equipment, including an espresso machine, coffee brewers, coffee grinders, blenders, syrups and other ingredients. Baristas will not be responsible for making the pastries as they will purchased from a local distributor.
Who will get the goods: Generally speaking, consumers who are willing to pay for the goods will be eligible to purchase them. More than 65% of the population makes over $20,000 and will be able to afford many goods offered by the cafe since most items will be under $5.
Donut Shop
What will be produced: A donut shop provides a large selection of donuts and beverages.
How will the goods be produced: A donut shop must employ several workers to serve customers and to make donuts. To make donuts, employees will need access to an industrial-sized mixer, an oven, a donut fryer, a donut glazer, a donut injector, and a donut icer. Likewise, to make coffee drinks, they need access to coffee brewers and a coffee grinder.
Who will get the goods: Depending upon the amount of donuts purchased, most consumers will spend between $5 to $30. With that in mind, consumers of all financial backgrounds should be able purchase the goods being offered.